Business Solar Rebate Australia 2026

Power you use on site, not power you export

Commercial feed-in rates are negotiated with your retailer rather than set by a standard tariff, and they sit well below what you pay for power. Every kilowatt-hour you consume on site saves you the full retail rate. Every one you export earns a fraction of it. This is why a business that runs weekdays in daylight does far better than one whose load sits in the evening, and why sizing to your daytime usage beats filling the roof.

Demand charges, the line most businesses do not see coming

Many commercial tariffs bill you not just for the energy you use but for your highest burst of demand in the billing period, measured in kW. Distributors move businesses onto these tariffs as usage crosses a threshold, often with little warning, and the new line item can run into thousands of dollars a year on its own.

Solar reduces it only if your peak falls in daylight hours, which is why the answer for a site that peaks early or late is usually solar plus a battery configured for peak lopping. If your bill has a “maximum demand” or “capacity” line on it, bring it to the quote: an installer who ignores it is sizing your system on half the picture.

helpWhat solar rebates are available for businesses in Australia?

Australian businesses can access two main incentives: (1) the federal STC rebate, applied as an upfront discount on installation — worth $7,500–$9,500 for a 30kW system in 2026 — and (2) the instant asset write-off, which lets eligible businesses deduct the full net cost in the year of installation, saving 25–30% in company tax. Victorian businesses can also access VEU certificates worth $1,500–$4,000 for commercial solar. Combined, most businesses save 30–45% of gross system cost.

helpDoes my business qualify for the STC rebate?

Yes, if your system is under 100kW today, and under 1MW from 1 October 2026. The Small-scale Technology Certificate (STC) scheme currently applies to commercial installations up to 100kW capacity, which covers the vast majority of small-to-medium businesses: offices, warehouses, retail, cafes, workshops. From 1 October 2026 that ceiling rises tenfold to 1MW, bringing larger factories, cold stores, farm sheds and shopping centres into the scheme. The rebate is applied as a point-of-sale discount by your installer, with no paperwork required from you. Your system must be installed by a Clean Energy Council accredited installer.

helpCan I claim the instant asset write-off for solar panels?

Yes. Eligible businesses can deduct the full cost of a solar system in the financial year it is installed, rather than depreciating it over time. At a 25% company tax rate, a $50,000 solar system effectively costs $37,500 after the tax deduction. At 30%, it costs $35,000. This stacks on top of the STC rebate. The system must be installed and ready for use before 30 June to claim in that financial year. Check with your accountant for current eligibility thresholds.

helpHow much is the STC rebate for a commercial solar system?

STC rebate values depend on system size, location (STC zone), and the deeming period remaining until 2030. In 2026, approximate values are: 10kW system, $2,500–$3,200; 20kW system, $5,000–$6,400; 30kW system, $7,500–$9,500; 50kW system, $12,500–$15,800; 99kW system, $24,500–$31,000. Once the scheme expands to 1MW on 1 October 2026, the discount runs at roughly 20% of installed cost, which the Government illustrated as about $70,000 on a 250kW system and more than $230,000 on an 850kW system. Systems in sunnier northern zones (Darwin, Brisbane) receive slightly more than southern zones (Melbourne, Canberra, Hobart).

helpWhat happens if my solar system is larger than 100kW?

Until 1 October 2026, systems above 100kW do not qualify for STCs. They generate Large-scale Generation Certificates (LGCs) under the Renewable Energy Target instead, earned annually on actual generation at roughly one per MWh rather than claimed upfront. At current LGC prices of about $4–$6 each, a 200kW system generating 280 MWh a year earns approximately $1,100–$1,700 annually. From 1 October 2026 this changes substantially: the small-scale scheme covers systems all the way to 1MW, so a 250kW or 500kW system earns the upfront discount instead. Only systems above 1MW stay in LGC territory. Businesses that were sized at 99kW purely to stay under the old cap should revisit that decision.

helpDo state governments offer additional commercial solar rebates?

Victoria has the Victorian Energy Upgrades (VEU) program, which generates Victorian Energy Efficiency Certificates (VEECs) for commercial solar — typically worth $1,500–$4,000 for a 30kW system. NSW has the Energy Savings Scheme (ESS) and Peak Demand Reduction Scheme (PDRS), though standard commercial solar PV is not a straightforward eligible activity — ask your installer. Queensland has had business energy programs; check the Queensland Government website for current offerings. WA and SA do not currently offer state-level commercial solar rebates.

helpWhen do commercial solar rebates decrease?

The STC rebate decreases by roughly one deeming year every January. A 30kW system installed in January 2027 generates approximately 20% fewer STCs than the same system installed in December 2026. The scheme ends entirely in 2030. There is a genuine financial incentive to install sooner: waiting one year on a 30kW system costs approximately $1,500–$2,000 in lost STC value.

helpCan a trust or sole trader claim business solar rebates?

Yes. The STC rebate applies regardless of business structure — companies, trusts, sole traders, and partnerships all qualify for the upfront STC discount. The instant asset write-off eligibility depends on your business structure and turnover; sole traders and partnerships claim through their personal tax return. Speak to your accountant to confirm how the write-off applies to your specific structure.

helpDo I need network approval, and does it affect my rebate?

Most commercial systems need approval from your electricity distributor (the DNSP, not your retailer) before they can be connected, and above 30kW that can take weeks. Approval does not change what you are entitled to, but it does change when the system goes in, and certificates are created at installation rather than at signing. That matters around 1 October 2026, when the small-scale scheme expands from 100kW to 1MW: a job that finishes early can fall under the old rules and miss the larger entitlement. Ask your installer to lodge the connection application as early as possible, and to tell you what export limit they expect.

helpCan I finance the system and still claim the rebate?

Yes, as long as you own the system. The STC discount is applied at the point of sale by your installer no matter how you pay, so a cash purchase and a chattel mortgage both receive it. A power purchase agreement works differently: a third party owns the system on your roof and sells you the power, so the certificate value and the instant asset write-off sit with them rather than with you. A PPA can still be a reasonable deal, just compare it against an owned system rather than assuming the two are equivalent.

helpCan I claim the rebate if I lease my premises?

Yes. The discount goes to whoever buys the system, so a tenant who pays for the installation claims it. You will need the landlord's consent, and it is worth agreeing in writing what happens to the system at the end of the lease. If you are financing, keep the finance term inside your remaining lease term so you are not still paying for a system on a building you have left.

helpWhat is a demand charge, and will solar reduce it?

A demand charge bills you for your highest burst of electricity demand in the period, measured in kilowatts, on top of the energy you actually use. Distributors move businesses onto demand tariffs as usage crosses a threshold, often with little warning, and the new line can run into thousands of dollars a year on its own. Solar reduces it only if your peak falls during daylight hours. If your peak sits early morning, in the evening, or is driven by equipment starting up, the usual answer is solar plus a battery configured for peak lopping. Check whether your bill has a "maximum demand" or "capacity" line and give it to your installer, because a system sized without it is being designed on half the picture.

helpWhy does my installer keep asking about daytime usage?

Because it decides the return. Commercial feed-in rates are negotiated with your retailer rather than set by a standard tariff, and they sit well below what you pay for power, so every kilowatt-hour you consume on site is worth several times one you export. A business running weekdays in daylight gets far more from the same system than one whose load sits in the evening. It is also why sizing to your daytime consumption usually beats filling the available roof space.